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HSBC Opts to Stay in London

LONDON—The financial giant has been headquartered in London since it was incorporated as a holding company by the Hongkong and Shanghai Banking Corp. Ltd. 25 years ago.

By Paul Bubny | paulbubny | | Updated on February 17, 2016
HSBC headquarters in London HSBC has been headquartered in the UK since its founding in 1991.
LONDON—HSBC will continue to be headquartered in London’s Canary Wharf district, the banking giant said Monday. The company’s board voted to stay put after a 10-month review, in which it considered a move to Hong Kong. In a statement, HSBC calls the UK “an important and globally connected economy. It has an internationally respected regulatory framework and legal system, and immense experience in handling complex international affairs. London is one of the world’s leading international financial centres and home to a large pool of highly skilled, international talent. It remains therefore ideally positioned to be the home base for a global financial institution such as HSBC.” Reuters reported that investors had encouraged HSBC to relocate from the UK, in part because of a tax the British government imposed on banks’ global balance sheets. The tax cost HSBC $1.1 billion in 2014 alone, according to Reuters. This past July, the government said it would reduce the tax by 50% and would no longer apply it to banks’ foreign holdings. However, in an interview with the BBC, HSBC chairman Douglas Flint said, “We had no negotiation with the government.” The bank’s predecessor company dates from 1865; it was incorporated in its present form in 1991 by the Hongkong and Shanghai Banking Corp. Ltd. as a holding company. It was reportedly the world’s sixth-largest public company as of 2014.

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